Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Standard, a furniture manufacturing company, announced the dismissal of 163 employees out of their 200 employees in two factories in Northern Estonia. Two plants are closing: one in Mustamäe and the other in Kose.
The reasons behind the dismissals are the increase in energy and input prices and the decrease in demand and income of the company. Initially, according to the collective redundancy notice submitted to the Estonian Unemployment Insurance Fund in mid-October, 53 people were to be dismissed, but due to several unforeseen circumstances, the number had increased to 163 by the beginning of November in the second notice. The unforeseen circumstances include, for example, the closure of Repo Vabrikud (Repo Vabrikud 2022 - EE), which was the main supplier of veneer sheets and wood-based panels for the furniture industry in Estonia.
The Estonian Unemployment Insurance Fund has started the collective redundancy procedure, which involves matching employers and employees, counselling and other necessary activities based on the needs of the workers losing their jobs.
Standard has been active in Estonia since 1956. The member of the council of the company said that during the long history of the company, there have been several crises which they have successfully overcome, and he believes they will eventually succeed this time as well.
Eurofound (2022), Standard, Closure in Estonia, factsheet number 107680, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/107680.